Question 1

Can I use just one year of 1099 income to qualify?

Accepted Answer

Some lenders allow one year, but two years is standard. One-year files require stronger credit and larger down payments.

Question 2

Do I need to show tax returns for a 1099 loan?

Accepted Answer

Not always. Many non-QM lenders qualify you on 1099 forms alone. Tax returns may still be requested but aren't always used for income calculation.

Question 3

What credit score do I need for a 1099 loan in Santa Paula?

Accepted Answer

Most lenders start at 620. Above 700 gives you significantly better rate options. Rates vary by borrower profile and market conditions.

Question 4

How is income calculated on a 1099 loan?

Accepted Answer

Lenders typically average your 1099 earnings over 12-24 months. Write-offs on your tax return are not used to reduce your qualifying income.

Question 5

Can I get a 1099 loan if I just went self-employed?

Accepted Answer

Most lenders require at least two years of self-employment history. Less than that usually requires a co-borrower or different loan structure.

Question 6

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over conventional. Rates vary by borrower profile and market conditions.

1099 Loans in Santa Paula for Independent Contractors